New York, NY (May 4, 2020) – Bluerock Residential Growth REIT, Inc. (NYSE American: BRG) (the “Company” or “BRG”) today provided updates on the impact of COVID-19, April rent collections and occupancy, and recent dispositions.
COVID-19 Update
“Our entire organization is committed to keeping our residents and employees safe from COVID-19, while adhering to all federal, state, and local regulations, and providing the highest quality living experience possible,” said Ramin Kamfar, Chairman and CEO. “Consistent with this approach, the Company has closed non-essential amenity areas and enhanced sanitizing protocols in essential areas such as elevators, mail centers, and laundry facilities. We are pleased to report that communications, leasing efforts, and resident servicing all remain fully functional primarily through direct appointments, digital, and virtual means.”
April Rent Collections and Occupancy
For the Month of April, the Company reported rent collections from its multifamily properties at 97%, including payment plans of 1%, and in-line with prior month rents collected (pre-COVID-19 impact).
The Company’s operating portfolio occupancy at April 30, 2020 remained unchanged month-over-month at approximately 94%. The Company believes this stable occupancy is reflective of its stated strategy of targeting highly amenitized, live/work/play apartment communities in knowledge-based job economies; such as health care, technology, education, sciences, and finance sectors.
Recent Dispositions
Pursuant to pre-COVID contracts of sale consistent with BRG’s business plan, year-to-date through April, the Company successfully disposed of its interests in five apartment properties totaling approximately $272 million in gross asset value, of which $160 million closed in April. These sales resulted in approximately $96 million in net proceeds to BRG. The assets were sold at a combined economic cap rate of 4.3%. Together across all of the investments, BRG yielded a 16% IRR and a 1.8x equity multiple on its investment capital.
About Bluerock Residential Growth REIT, Inc.
Bluerock Residential Growth REIT, Inc. (NYSE American: BRG) is a real estate investment trust that focuses on developing and acquiring a diversified portfolio of institutional-quality highly amenitized live/work/play apartment communities in demographically attractive knowledge economy growth markets to appeal to the renter by choice. The Company’s objective is to generate value through off-market/relationship-based transactions and, at the asset level, through value-add improvements to properties and to operations. The Company is included in the Russell 2000 and Russell 3000 Indexes. BRG has elected to be taxed as a real estate investment trust (REIT) for U.S. federal income tax purposes.
For more information, please visit the Company’s website at bluerockresidential.com.
